Assigned Risk Workers Comp.

[Indiana_Adam]

Have a client bidding work in a non-NCCI state - New York. The WC they have only covers them here in their domiciled state, as it is through the IN state pool.

The issue they have is a lack of funds to pay 100% of premium for this NY policy. Once the job is up and running, they will have enough from salvage to pay off entire premium.

Do I bend the rules and reduce their estimated payroll to get premiums within budget and make it clear NY will get the money come audit time?
Are there any premium finance companies that will finance assigned risk premium?

 

[Arnage150]

Have a client bidding work in a non-NCCI state - New York. The WC they have only covers them here in their domiciled state, as it is through the IN state pool.

The issue they have is a lack of funds to pay 100% of premium for this NY policy. Once the job is up and running, they will have enough from salvage to pay off entire premium.

Do I bend the rules and reduce their estimated payroll to get premiums within budget and make it clear NY will get the money come audit time?
Are there any premium finance companies that will finance assigned risk premium?

The NYSIF offers payment plans. I believe if the premium is under $2,500 they want 50% down and 9 installments. Over 2,500 and they want 25% down w/ 9.

PS, if you'ev already rec'd the quote from the NYSIF they will not amend the payrolls down. They are dicky like that. So that option is off the table anyway.

 

[EugeneM]

there are premium finance options available - gotta do the math to see if its worth the interest %.

My question is are they including insurance costs in the bid? In that case keeping the overall insurance costs down would be important in winning the job.

http://www.cypressfunding.com/

 

[Indiana_Adam]

Thank you for replies. Arnage, Im working with NY under writer to see if we can do the payment schedule. However, my client may only be in NY for a month so its up in the air as to whether they will approve. And yes, she already shot me down on lowering payroll. The other dick thing they do is go by actual payroll or 25% of total job/sales, whichever is greater.

The only premium financing I am contracted with wont finance assigned risk. Will the company posted do it? If NY says no to payments, financing will be their only option. Ive asked them to keep me in loop on bids to make sure they are accounting for insurance costs. The NY rate is roughly $171 per $1,000 payroll. I may just tell them to factor in $200 for WC for every $1,000 in payroll for future bids, just to be safe.

 

[Arnage150]

Thank you for replies. Arnage, Im working with NY under writer to see if we can do the payment schedule. However, my client may only be in NY for a month so its up in the air as to whether they will approve. And yes, she already shot me down on lowering payroll. The other dick thing they do is go by actual payroll or 25% of total job/sales, whichever is greater.

The only premium financing I am contracted with wont finance assigned risk. Will the company posted do it? If NY says no to payments, financing will be their only option. Ive asked them to keep me in loop on bids to make sure they are accounting for insurance costs. The NY rate is roughly $171 per $1,000 payroll. I may just tell them to factor in $200 for WC for every $1,000 in payroll for future bids, just to be safe.

If your client will only be in NY for 1 month that sounds temporary. Most state fund policies cover temporary work in other states. Are they hiring NY employees or are the employees from your state going their temporarily? Make sure you read the policy language on his current policy.

You can't find a regular company to write the whole thing and put an an all state endorsement?

 

[Indiana_Adam]

They don't hire out or subcontract in any state they work. They only use their core crew of guys and move them around. I read through the IN Assigned Risk policy it specifically states coverage is only when work is being performed in IN. Have them placed with Technology Insurance out of Georgia (part of AmTrust).

Arnage, I wish I could find a regular carrier as this is a huge pain in the rump. NY doesn't pay commission on State Pool, even if we get NY license. They are lumped into demolition and no company wants to write the WC on that, unless they have to. They are too small to get placed with a captive group like some larger companies can. If you know of any companies that will voluntarily write WC for a demolition risk, please let me know.

 

[Arnage150]

They don't hire out or subcontract in any state they work. They only use their core crew of guys and move them around. I read through the IN Assigned Risk policy it specifically states coverage is only when work is being performed in IN. Have them placed with Technology Insurance out of Georgia (part of AmTrust).

Arnage, I wish I could find a regular carrier as this is a huge pain in the rump. NY doesn't pay commission on State Pool, even if we get NY license. They are lumped into demolition and no company wants to write the WC on that, unless they have to. They are too small to get placed with a captive group like some larger companies can. If you know of any companies that will voluntarily write WC for a demolition risk, please let me know.

what is the class code? how much total payroll?

 

[Indiana_Adam]

Arnage, thank you greatly. Applied UW got back with me right away and will likely be able to help out. Ill come out a hero for saving my client money and time and Ill actually get paid a commission if they take any more jobs in NY. I can't thank you enough!

 

[Arnage150]

Arnage, thank you greatly. Applied UW got back with me right away and will likely be able to help out. Ill come out a hero for saving my client money and time and Ill actually get paid a commission if they take any more jobs in NY. I can't thank you enough!

Great, I'm glad it worked out. Just know applied works like a payroll co. Make sure your clients understands that. They use Berkshire hathaway paper so the wc product is good.

 

[Indiana_Adam]

What do you mean they work like a payroll company. The UW did mention no audits because of the way they write, but I didnt have a chance to ask for clarification.